Santos Contribution To The Australian Economy

Santos contributes positively to the Australian economy, being one of the leading independent oil and gas producers. Supplying energy needed for homes, businesses, and industries across Australia and Asia. They seek to deliver long term value to their shareholders supplying these resources, as well as high quality liquefied natural gas. The business has been running since 1954 providing a vital resource for Australian’s in their everyday lives. Santos provide growth in the Australian economy as it provides surface internationally. They aim to become a leading producer around the globe, currently providing their services to countries such as Vietnam, Papua New Guinea, and throughout Indonesia. Santos released a project in April 2014, being the

This has been well documented in the recent drop in price of Santos, as they can’t sell things for as cheap as before. As the price has increased, the demand for gas has dropped increasingly.

As of this external factor, internally three of the directors that were involved in the company’s decision to sign off on the Gladstone LNG project in 2011 have now left the board in the past three years. It is also more than likely that another three or possibly more could depart before the end of the

To use what money they make themselves is what they should spend, relying on themselves rather than big money loans. Mr Peter Coates has recently supported that view saying, “Remember capital is tight and we are going to have to make decisions over the next month or so on where we spend capital. We are going to run our business on our own cash flows, which is an important part of operating in this low oil price environment’’. Also, the newly appointed chief executive Kevin Gallagher has spoke also of the company being under immense pressure to find ways to reduce costs as well as debt, due to Santos record $2.7 billion full year loss. The chief executive has promised to explore all ventures in finding ways to cut costs, including possible collaborations with other companies. Alphinity Investment Management portfolio manager Stephane Andre stated, "Gallagher is saying that he is going to focus on costs and looking at every way to reduce costs even in co-operation with other LNG projects, so that's probably going to be positive if he can do that," Santos have let go of 1000 jobs in the last 18 months, which hopefully does not increase under Mr. Gallagher’s new scheme to cut costs that Stephane Andre is talking about. Just recently, on the 18th of February, Mr. Coates noted positively “We've made significant changes…having reduced capital expenditure by 54% below 2014